HomeMy WebLinkAboutMinutes_GEDCO_04.16.2012Notice of Meeting of the
Georgetown Economic Development Corporation
and the Governing Body of the
City of Georgetown, Texas
Monday, April 16, 2012
The Board of Directors of the Georgetown Economic Development Corporation, created pursuant
to Chapter 504 of the Texas Local Government Code (formerly known as Section 4A of the
Development Corporation Act of 1979), will meet on Monday, April 16, 2012 beginning at 04:30
PM in the Williamson Room, at the Georgetown Municipal Complex, 300 Industrial Ave,
Georgetown, Texas 78626
If you need accommodations for a disability, please notify the city in advance.
Georgetown Economic Development Corporation Members:
John Marler, Tommy Gonzalez, Rachael Jonrowe, Danny Meigs, Hugh Brown
Call to Order at 04:30 PM
REVISED
LOCATION CHANGE
A.Discussion and possible action regarding the Project Progress Report, including Airborn,
Enflite, Radix BioSolutions, Lone Star Circle of Care, Grape Creek Winery, Georgetown
Winery, and Difusion Technologies, Inc. -- Mark Thomas, Economic Development Director
and Paul E. Brandenburg, General Manager .
http://georgetown.org/pdfs/gedco/2012/4-16-12/ItemA.pdf
B.Consideration and approval of the minutes from the Meeting held Monday, March 19,
2012—Rachael Jonrowe, Secretary
http://georgetown.org/pdfs/gedco/2012/4-16-12/ItemB.pdf
C.Consideration of the March 31, 2012 Financial Reports--Micki Rundell, Finance Manager
http://georgetown.org/pdfs/gedco/2012/4-16-12/ItemC.pdf
D.Presentation by Jeff Moore regarding an overview of 4A legislation, an update of new laws
and anticipated topics of interest at the next legislative session—Mark Thomas, Economic
Development Director.
http://georgetown.org/pdfs/gedco/2012/4-16-12/ItemD.pdf
EXECUTIVE SESSION
The Georgetown Economic Development Corporation will meet in closed executive session as allowed by
Texas Open Meetings Act (Texas Government Code Chapter 551), as follows:
E.Section 551.072. DELIBERATION REGARDING REAL PROPERTY
Discussion and possible action to deliberate the purchase, exchange, lease or value of real property
for purposes authorized by the Development Corporation Act which discussion in open session
would have a detrimental effect on negotiations with third persons.
F.Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT
NEGOTIATIONS.
Deliberation regarding commercial or financial information that the corporation has received from a
business prospect that the Georgetown Economic Development Corporation seeks to have locate,
stay, or expand in or near the territory of the City of Georgetown and with which the Corporation is
conducting economic development negotiations; and/or deliberation regarding the offer of a financial
or other incentive to a business prospect that the Corporation seeks to have locate, stay, or expand in
or near the territory of the City of Georgetown.
- Project Black
- Tasus Expansion
- Grape Creek
- Difusion
G. Section 551.071. CONSULTATION WITH ATTORNEY
Consultation with attorney regarding legal issues related to agenda items and other matters in which
the duty of the attorney to the Georgetown Economic Development Corporation under the Texas
Disciplinary Rules of Professional Conduct of the State Bar of Texas.
H. Action out of Executive Session
Certificate of Posting
I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this
Notice of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the
general public at all times, on the _____ day of _________________, 2012, at __________, and
remained so posted for at least 72 continuous hours preceding the scheduled time of said
meeting.
__________________________________
Jessica Brettle, City Secretary
Minutes of the Meeting of
the Georgetown Economic Development Corporation
and the Governing Body of the
City of Georgetown, Texas
Monday, April 16, 2012
The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on
Monday, April 16, 2012.
Members Present:
Rachael Jonrowe, Tommy Gonzalez, Danny Meigs, John Marler, Hugh Brown
Members Absent:
Staff Present:
Paul E. Brandenburg, General Manager, Mark Thomas, Economic Development Director, Shirley
Rinn, Executive Assistant, Laurie Brewer, Deputy City Manager, Bridget Chapman, Acting City
Attorney, Bill Sattler, Councilmember, District 4
Minutes
Regular Meeting
The meeting was called to order by John Marler at 4:30 p.m.
A.Discussion and possible action regarding the Project Progress Report, including Airborn,
Enflite, Radix BioSolutions, Lone Star Circle of Care, Grape Creek Winery, Georgetown
Winery, and Difusion Technologies, Inc. -- Mark Thomas, Economic Development Director
and Paul E. Brandenburg, General Manager.
Thomas told the Board we may need to call a Special Meeting with regard to Grape Creek.
Jeff Moore advised that under this item that the presentations for the Executive Session
items will be done at that time.
Mark Thomas introduced Walt Barkalow, the General Manager for Tasus. He provided an
overview of Tasus’ operations and provided the Board with a description of the types of
automotive products Tasus manufactures, as well as a description of both phases of the
original build out. He informed the Board that Tasus is looking at a 27,000 square foot
warehouse expansion and that once the warehouse expansion takes place the materials
currently stored in phase 2 of the original build out will be moved to the new warehouse
and new equipment will be put into phase 2. He indicated that upon completion of build
out they would be looking at 200-250 employees. He told the Board that they currently have
143 full time employees , and are considering an expansion because they are actually
turning down customers now due to being at capacity.
He indicated that the capital investment for the warehouse expansion and the phase 2 build
out would be around $2 million and that once everything was complete the total capital
investment would be $13 million.
It was indicated that the Return on Investment would be discussed in Executive Session.
Tasus is not asking for a specific amount, but requesting that GEDCO consider some type of
incentive to assist with the project. Barkalow also told the Board that about 30% of Tasus'
employees live in Georgetown.
Thomas introduced Bobby Choi and David Phillips who provided an overview of
Blackbird's operations. Blackbird is comprised of several companies with shared support.
Phillips described 370 Vision, which is a call center that coordinates house call services to
managed care companies, hospital and clinic systems, and insurance companies. He also
described the operations of AmKo, which is a healthcare technology company.
He told the Board that Blackbird's administrative and support staff is currently spread
among Sherman, Dallas, and Temple and Georgetown, but they hope to bring it all to
Georgetown to Tamiro Plaza. He told the Board they are looking at 30-40 full time
employees over the first year, a $2 million payroll and 75 full time employees by the end of
the third year. He indicated that they need to pre-build and be able to respond quickly
respond to growth demands.
Blackbird is requesting incentives to defray build out costs for the 2nd
d
floor of Tamiro
Plaza. They are committing money for equipment and Tamiro Plaza's owners are offering a
rent incentive. He told the Board that the annual payroll will average around $60,000 and
that the employees will be a mix of Physician Assistants, Medical Practitioners, Medics, etc.
There was additional discussion regarding ownership of the business operations and assets,
and it was confirmed that Blackbird Enterprises is making the request for assistance. There
was more discussion on Blackbird's operations with regard to leasing of equipment to other
companies and how the call center would operate, the cost of the finish out of the 2nd floor
of Tamiro Plaza, which they estimate to be around $270,000, the impact of ambulances
parking downtown, and whether the employees located in Georgetown would be new
employees or employees transferring from other areas.
The Board also inquired as to what the impact would be if Blackbird did not receive
GEDCO funding and was told that it would not prevent them from locating in Georgetown,
but would slow down the process .
B.Consideration and approval of the minutes from the Meeting held Monday, March 19,
2012—Rachael Jonrowe, Secretary
Motion by Gonzales, second by Meigs to approve the minutes from the Meeting held
Monday, March 19, 2012. (Approved 5-0)
C.Consideration of the March 31, 2012 Financial Reports--Micki Rundell, Finance Manager
Brewer provided the overview of the Financial Report. There was an expenditure of
$50,000, which was a payment to TLCC. She also told the Board that the good news is that
sales tax is currently up 25.98% over last year.
D.Presentation by Jeff Moore regarding an overview of 4A legislation, an update of new laws
and anticipated topics of interest at the next legislative session—Mark Thomas, Economic
Development Director.
Mark Thomas introduced Jeff Moore, the GEDCO Board’s legal counsel who provided an
overview of current legislation with regard to Economic Development Sales Tax. He told
the Board that the statute is somewhat difficult to work with because it has been amended
many times and is amended regularly.
He told the Board that Type A expenditures can be utilized for Projects related to the
creation or retention of primary jobs, projects related to job training, and promotional
expenditures. He also provided an overview of what qualifies as a project for Type A
Corporations, as well as an overview of what “costs” can be paid for with 4A funds. He
also discussed the definition of “Primary Jobs”, and told the Board that when he is
requested to look at a project that he has to see whether the types of jobs being created fit
within the definitions of the job categories outlined in the Act.
Recessed to Executive Session at 5:25 p.m.
EXECUTIVE SESSION
The Georgetown Economic Development Corporation will meet in closed executive session as allowed by
Texas Open Meetings Act (Texas Government Code Chapter 551), as follows:
E.Section 551.072. DELIBERATION REGARDING REAL PROPERTY
Discussion and possible action to deliberate the purchase, exchange, lease or value of real property
for purposes authorized by the Development Corporation Act which discussion in open session
would have a detrimental effect on negotiations with third persons.
F.Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT
NEGOTIATIONS.
Deliberation regarding commercial or financial information that the corporation has received from a
business prospect that the Georgetown Economic Development Corporation seeks to have locate,
stay, or expand in or near the territory of the City of Georgetown and with which the Corporation is
conducting economic development negotiations ; and/or deliberation regarding the offer of a financial
or other incentive to a business prospect that the Corporation seeks to have locate, stay, or expand in
or near the territory of the City of Georgetown.
- Project Black
- Tasus Expansion
- Grape Creek
- Difusion
G. Section 551.071. CONSULTATION WITH ATTORNEY
Consultation with attorney regarding legal issues related to agenda items and other matters in which
the duty of the attorney to the Georgetown Economic Development Corporation under the Texas
Disciplinary Rules of Professional Conduct of the State Bar of Texas.
Reconvened to Regular Session at 6:10 p.m.
H. Action out of Executive Session
There was no action out of Executive Session.
Adjourned at 6:10 p.m.
Attest:
__________________________________________________________
Rachael Jonrowe, Corporate Secretary John Marler, President